Finance and Sustainable Growth
Fossil Fuel Levy
The United Kingdom Government has given a commitment to
Has the cabinet secretary calculated the impact on the Scottish economy and the number of jobs that could be created if the fund was repatriated to Scotland?
I have not made the precise calculation to which Mr Paterson refers, but I can say that the advantage of the fossil fuel levy and the real imperative for us to secure access to the resources in a fashion that is additional to the Scottish budget is that it would enable us to pursue what is widely appreciated throughout the Parliament to be the enormous opportunity in the potential of renewable energy in Scotland.
Like other members of the Parliament, I have many constituents who applied for support under the boiler scrappage scheme and were disappointed to learn that it was oversubscribed in just 36 hours. In the event that funds from the fossil fuel levy are released, will the Government consider using some of them to extend the boiler scrappage scheme, which has clearly been both popular and successful?
I hear Mr Scott’s concerns on behalf of his constituents. Statute is clear that we must use the resources from the fossil fuel levy only for investment in renewable energy. That is the test for investment that would have to be applied, and any investments would have to be made against that particular benchmark. However, I will of course consider the issue that Mr Scott has raised.
Does the cabinet secretary agree that the funding of infrastructure requirements associated with renewable energy may well meet those criteria, even though they are not directly involved in the generation of electricity? If that is the case, how will the cabinet secretary undertake consultation on the use of any such funds with those who have an interest in ensuring that the right infrastructure is in place throughout Scotland?
That is an aspiration to which we would all subscribe. We must have in place the appropriate infrastructure to ensure that Scotland can retain the leadership that it has in many areas of renewable activity—that is the case particularly in wave and tidal activity, but we are in an exceptionally strong position on offshore wind into the bargain. It is essential that the infrastructure that we put in place meets all the demands and requirements.
Libraries (Book Contract)
The tendering exercise is being conducted by Scotland Excel, acting on behalf of all the local authorities that are its members. The Scottish Government is not a decision maker on this contract.
But the Scottish Executive has overall responsibility for the Scottish economy and is, as far as I understand it, in charge of educational policy. It cannot be good for Scotland for small book publishers to be placed at risk and for librarians, particularly school librarians, to lose direct access to local companies that currently provide them with books. Can the Scottish Government really do nothing whatever to remedy a situation that is directly affecting jobs and services for people in Scotland?
I acknowledge members’ concerns about this issue; Mr McNulty has written to the Cabinet Secretary for Education and Lifelong Learning and other members have written to me. As I said in my answer, which was not meant to be evasive in any way, the Government is not the decision maker on the contract—Scotland Excel is taking forward this procurement—but within the boundaries of what I am able to say about this, I can tell the chamber that I am advised that in this area of activity about 75 per cent of existing supplies of books are delivered by companies that are outwith Scotland and not of the character that Mr McNulty referred to in his question. They are not small, local, Scottish publishers. I am advised, therefore, that the focus of the tender is on delivering greater value for the 75 per cent of annual expenditure that currently flows through wholesalers based outside Scotland. The other 25 per cent of the market—or £2 million-worth of supplies per annum—that is made up of specialist titles will in no way be affected by this tender. In other words, Scottish providers and suppliers should not be affected by these developments.
West Lothian Council (Transport)
The Scottish Government’s senior bus development adviser met representatives of West Lothian Council on 28 April 2010 to discuss various aspects of the provision of local bus services in West Lothian.
When I spoke to West Lothian Council officials recently, they were unable to confirm what Scottish National Party councillors in Falkirk were telling local hauliers, which was that the Scottish Government was about to provide finance for the Avon gorge crossing to be started and completed. Will the minister confirm that that is the case? If not, when is he likely to make such an announcement?
I recognise that Falkirk Council and West Lothian Council have for quite a long time been carrying out very substantial work on this matter. The priorities of the current roads programme in the strategic transport projects review are clear and we will consider the A801 upgrade and other measures promoting access to Grangemouth in particular as we consider future spending reviews.
Scottish Executive Staff Bonuses
During the period 1 April 2008 to 31 March 2009, performance payments totalling £1,887,514 were paid to staff in the Scottish Government’s core directorates. The payments were made on a taxable, non-consolidated and non-pensionable basis.
I wonder whether the cabinet secretary can clarify the Government’s policy on staff bonuses with regard to its pay policy over the next two years. Does it or does it not believe that bonuses should be paid to staff?
The Government has established its pay policy for the current year—2010-11. The Government’s approach is designed to constrain significantly public sector pay. That has been clear as each year of the Administration’s term has gone by—our policy has constrained public sector pay.
The cabinet secretary has made it known to those who receive bonuses that he would like them to waive their bonuses. Some chief executives have said that they will do so. Will he give us a progress report on whether other chief executives and others who receive such bonuses have told him that they will waive their bonuses for next year?
The question that Mr Smith lodged was on a different subject—bonuses in the core Government. I certainly have not invited to waive their bonuses the members of staff who are affected here and whom I can approach to do so, because the bonuses to which I referred in my first answer are paid to a combination of staff in the core Government and members of the senior civil service, whose pay policy and bonus approach are controlled by the United Kingdom Government’s Cabinet Office.
Economic Recovery Plan (Construction Industry)
In the past two years, we have kept in close touch with the construction sector through the Scottish construction forum and its member organisations. I receive from the forum regular detailed briefings on activity throughout the sector. The Minister for Housing and Communities also regularly meets Homes for Scotland. In the context of our economic recovery plan, we are supporting construction by continuing to invest in infrastructure, social housing and skills and training.
The cabinet secretary is aware of the construction industry’s drive for the Government to focus on linking public procurement to training, which he mentioned. Will he ensure that that policy is implemented?
I acknowledge Marilyn Livingstone’s long-standing interest in the construction industry’s work. I assure her that the concept of community benefit and deploying that to create training obligations and commitments for construction companies and developers will be very much part of the Government’s procurement approach. We would be delighted to receive from Marilyn Livingstone suggestions for elements of that approach that the Government should develop in particular.
On a point of order, Presiding Officer—well, it is more a point of clarification: I said local construction forums.
What progress has the Government made on providing construction contractors with a common prequalification procedure for public contracts?
I will correct myself: I misheard Marilyn Livingstone on local construction forums. I will certainly ensure that there is regular dialogue with the industry because it is essential to understand many of the challenges and aspirations that exist.
Prequalification.
Thank you for that. The first part of the work towards that was to provide greater structure to public procurement through the public contracts Scotland website, which has been up and running for more than a year. The next part of that work is to ensure that, when companies register on public contracts Scotland, they are able to register financial and other data on a pre-contract qualification basis to ensure that they do not have to provide the same information every time that they apply for a public sector contract. We expect that work to be complete during this calendar year. It will represent a significant enhancement of the services that are available to individual companies when tendering for public sector contracts.
Manufacturing Sector
The Scottish Government provides a wide range of support to manufacturing companies. That support is delivered through Scottish Enterprise, Highlands and Islands Enterprise, Scottish Development International, local authorities and Skills Development Scotland.
I am encouraged by the partnership working that the Scottish Government has undertaken with the STUC on the issue. Although its powers in the matter are limited, will the minister confirm that the Scottish Government will make it a priority to do what it can to retain and expand Scotland’s manufacturing skills base—such as the expertise that is found at the Philips Lighting plant in Hamilton in my region—and encourage its use as a key driver for securing our economic recovery?
Absolutely. We consider that to be fundamental. The retention of a strong skills base in Scotland is key to increasing economic growth, international competitiveness and productivity. We are working with the industry to ensure that young people are attracted into careers in engineering, manufacture, science and technology. Philips in Hamilton is an example of a company that is adapting successfully to the changing focus within the industry and working closely with Scottish Enterprise to that end.
My colleague Charlie Gordon says how illuminating that answer was on Philips. However, that is another matter entirely.
Andy Kerr makes a key point. It is one of the aspects that has come out of the relationship with the Scottish manufacturing advisory service. We can help companies innovate and develop existing products. In addition, we are now creating a better climate, in which academia is more positively involved with our business community. A key example is the Strathclyde institute for operations management in Glasgow where, under Professor Umit Bititci, we now have a good forum for academia and genuine manufacturing to rub shoulders, exchange ideas and come up with an approach that puts Scotland on the path of continuous improvement and continual innovation.
Railway Stations (West of Scotland)
The Scottish Government provides direct funding for major rail projects, including the west of Scotland rail improvement programme, which has added a new platform at Glasgow Central and is extending platforms for longer trains at stations in Inverclyde and Ayrshire. The Scottish Government also provides support to Strathclyde partnership for transport to enable improvements to be delivered at many rail stations across the west of Scotland, for example at the Partick station interchange. That complements the improvements that were secured from ScotRail through the franchise agreement with the Scottish ministers.
I have met representatives of groups that are involved in the adopt a station scheme, and have been impressed by their suggestions to reinvigorate and return to their former glory older and more traditional stations in the west of Scotland. Will the minister give an assurance that any public investment via the scheme will guarantee that the historic and architectural significance of the stations will be of paramount importance and that current branding can be adapted using traditional livery styles, thus guaranteeing the traditional appearance while promoting the current organisational branding?
Scotland’s railway infrastructure is a substantial and fine heritage, much of which dates back well over 100 years. In any developments, we would wish to protect the integrity of our historic stations. The adopt a station scheme is successful and is one of a range of interventions to breathe new life into stations throughout Scotland.
I call Jeremy Purvis, but ask him to bear in mind that the question is about the west of Scotland.
Indeed, Presiding Officer. I am grateful.
He cannot really, because the question was about railway stations in the west of Scotland and I do not think that the Borders railway will have any of those.
I am sure that railway stations in the west of Scotland will provide good cheer to those who will enjoy the services that will be introduced for the Borders when the railway opens there.
Clyde Fastlink
The amount and duration of the Scottish Government’s financial contribution to the Clyde fastlink project will be determined by the outcome of on-going discussions into the business case and accompanying details of the project, which are being developed by Strathclyde partnership for transport and Glasgow City Council. The Scottish ministers have indicated that they are willing to contribute to an initial phase of the project, which will provide improved connections between the city centre, the Scottish Exhibition and Conference Centre and the new Southern general hospital.
I thank the minister for that answer, but I find it disappointing. It is the latest of several similar answers on the subject. Given that the Scottish Government started hinting at financial support for Clyde fastlink only when it cancelled the Glasgow airport rail link, is not the Government’s real view of fastlink that it is a tactical smokescreen rather than a key transport project?
I hope that the member will forgive me, but I am certain that I referred to fastlink considerably earlier than he suggests. We follow with keen interest the work of SPT and Glasgow City Council on the subject and we look forward to continuing to engage in that important project.
Microgeneration (Corporate Residential Properties)
Section 71 of the Climate Change (Scotland) Act 2009 requires the Scottish ministers to make provision for permitted development rights for microgeneration in non-domestic buildings by 1 April 2011.
New-build corporate residential properties often include microgenerative measures in their construction. That technology not only helps supply power to the properties concerned, but has the potential to allow them to sell power back to the National Grid through the clean energy cashback scheme, to help with upkeep and running costs. However, existing corporate residential properties do not benefit from any assistance that the Scottish Government offers homeowners in installing microgenerative technology. Instead, they often have to rely on commercial loans which, in the words of Friends of the Earth, make
The property sector, in both its commercial and domestic parts, is a significant contributor to greenhouse gas emissions. Therefore, the Government is undertaking a range of interventions to ensure that we address that issue. In particular, for both commercial and domestic properties, reductions in rates are available when investments are made in a range of energy efficiency or energy-generating investments in buildings. We will continue to look for opportunities. I have listened very carefully to what the member has said.
The minister will recognise the importance of managing demand in order to reduce costs and carbon emissions in residential homes, as well as of promoting microgeneration. Will ministers consider supporting measures to improve the efficiency of boilers and heating systems in properties of that kind?
The member will know of our interest in the subject of boilers in the domestic circumstance. We are very interested in ensuring that people understand their energy usage. We are working with energy companies. Intelligent metering is coming along and, of course, there are interesting examples in other countries of giving people access to information from other, similar properties that have intelligent meters, thus enabling them to realise what they can do better. Those are all subjects that we will continue to monitor. We will continue to work with the power industry and property owners.
Public Services Reform (Scotland) Act 2010
The Public Services Reform (Scotland) Act 2010 received royal assent on 28 April and the first commencement order was made on 4 June. That order brings creative Scotland into being on 1 July and brings various other provisions, including the order-making powers in part 2 of the act, into force on 1 August. Further provisions will be brought into force later this year.
In view of some of the concerning revelations that we have heard over the past few weeks about Strathclyde partnership for transport, among other public bodies, and its use of public money, will the Government tell us when it intends to bring into force the transparency provisions of the act and when it will start to consider which organisations should be abolished?
We will consult public bodies on draft guidance in relation to publishing duties over the summer, with a view to bringing those new duties into force later this year. Of course the wider issue of the use of the order-making powers remains part of the consideration of ministers. Any proposals will, of course, be announced to Parliament in the proper way.
Scottish Borders Manufacturing Sector
The Scottish Government provides a wide range of support to manufacturing companies in the Borders and across Scotland through Scottish Enterprise, Scottish Borders Council and Skills Development Scotland.
The minister will be aware of the recent news about some 120 job losses at Peter Scott & Company Ltd in Hawick—another key manufacturing business in the Scottish Borders is in administration. In all my dealings with such firms, access to finance, not lack of orders, is cited as the problem. Can the minister provide definitive answers on when the Scottish investment bank will make funds available to businesses and say exactly what his department is doing to get banks to lend to viable companies in order to prevent horrendous redundancies such as we have seen in the Borders recently?
I genuinely feel for the people who are involved at Peter Scott. The money will be available through the Scottish investment bank towards the end of this year. I understand from KPMG that it sees positive prospects of finding people to take up and move forward the assets at Peter Scott & Company Ltd. I very much hope that that will come to pass. We have to remember the source of the credit crunch and the reality of the regulatory race to the bottom that caused it and we must look to work together in Scotland to ensure that we get the very best possible outcomes.
I am aware that the minister is aware of the on-going problem at Peter Scott & Company Ltd in Hawick, which is a manufacturing firm of over 130 years’ standing. Like me, the Scottish Government has been in touch with the administrator—indeed, the Cabinet Secretary for Finance and Sustainable Growth has done so. I heard only today from the administrator that thousands of pounds of social and holiday contributions that staff have made appear to be at risk. Will the minister and the Scottish Government exert whatever influence they can to ensure that those funds are reimbursed to these important workers in the manufacturing sector?
I am very happy to investigate that. Perhaps the member will give me some further information on that. I will certainly put any weight that I can behind it.
Petrol Prices (Rural Areas)
The Cabinet Secretary for Finance and Sustainable Growth is writing to the Chancellor of the Exchequer to raise a number of issues, including rural fuel prices, which the Scottish Government wishes to see addressed in the UK emergency budget. I hope that the correspondence receives a more favourable response than our letters to the previous UK Government, which consistently rejected any attempt to address the high fuel prices in rural areas.
Does the minister share my belief that there is ambiguity in the UK coalition document on its commitment to a pilot discount scheme for petrol prices in rural areas? Has it made that commitment or is it simply going to investigate such a pilot scheme, as seems to be the case? There is, of course, a big difference between the two. If there is to be a pilot scheme, will he support my call for the Highlands and Islands to be a pilot area?
It is flattering to be expected to respond on behalf of the UK Government. In its manifesto, the Conservative party discussed a fair fuel stabiliser, under which fuel duty would be cut when oil prices rise and vice versa when they fall. In their manifesto, the Liberal Democrats set out that they would introduce a rural fuel discount scheme that would allow a reduced rate of fuel duty to be paid in remote and rural areas. In contacting and pressuring the new Government, we will hold the members of the coalition to account.
Will the Scottish Government agree to instruct its enterprise officials to prepare a detailed analysis of how the very high price of motor fuel impacts on the cost of goods and vital services in the most remote areas of Scotland? The detail of such an analysis would reinforce the argument that action must be taken to address the very high cost of motor fuel in areas such as Caithness, Sutherland and Easter Ross.
Jamie Stone is absolutely right to focus on the need for objective information to underpin the argument. We will, of course, ensure that we have that information as we pursue this vital interest for many rural areas in Scotland with the new UK Government.
Rail Freight (Grangemouth)
Transport Scotland’s on-going work to develop a framework for rail freight policy is carried out in the name of Scottish ministers. I am, of course, kept informed of progress. Transport Scotland, on behalf of Scottish ministers, takes part in discussions, which are led by Falkirk Council, on the Grangemouth freight hub national development. The next meeting will be held in two weeks. Progress in taking forward the Grangemouth freight hub is reported through updates to the national planning framework action programme, which is available on the Scottish Government’s website.
Does the minister agree that, given the huge benefits for our climate change programme of taking traffic off our roads, we should give the highest possible priority to ensuring the integration of infrastructure in road, rail and sea freight? Would that present further opportunities for low-carbon gains, such as the reintroduction of a passenger service at Grangemouth railway station? I would be grateful if that suggestion could be discussed. In combination with a rail freight service to Grangemouth, it could facilitate development of Grangemouth station.
I share the member’s enthusiasm for taking heavy goods vehicle traffic off the roads and transferring it to rail and sea freight. Grangemouth is a key part of the freight infrastructure and is a link between the road and rail networks, in particular. As investment is driven down to Grangemouth through the use of freight, opportunities in relation to passenger traffic will be created. We continue to monitor the position.
End-year Flexibility
In the 2007 spending review, the Scottish Government set out its plans to draw down end-year flexibility balances between 2008-09 and 2010-11, in response to the tightest spending review settlement since devolution and taking into account the previous Administration’s agreement with the Treasury to draw down £665 million in EYF in 2007-08. The Scottish Government subsequently confirmed its intention to draw down a further £129 million in EYF in 2010-11, to offset in full the cut that arose from the change to the Department of Health capital baseline that was included in the April 2009 UK budget.
I thank the cabinet secretary for his well-constructed, but rather opaque, reply. I am reminded of the answer that my granny used to give when I asked her about the mysterious tin on the shelf. She would say, “There’s nae need to be reckless, son. You’ve aye got to put money away for a rainy day.” Given our inclement weather, and given that the cabinet secretary has already voraciously consumed £1.5 billion of the reserves that he inherited, how much will be left to deal with any future inclement or rainy days in Scotland?
I always knew that Mr McAveety was constantly drenched by pessimism and all that goes with the inclement weather that he faces. I will bring some sunshine to him, to overcome his gloom. He may have considered my answer to be “opaque”. If he thought that that was opaque, he has not yet heard me in full motion on some of the detail.
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